YEREVAN (A.W.)—The New York-based group ContourGlobal signed a takeover deal on June 8 to acquire Vorotan Hydro Cascade, Armenia’s largest hydroelectric complex, becoming the first Western firm to purchase a major stake in Armenia’s Russian-controlled energy sector.
Armenia – Energy Minister Yervand Zakharian and Joseph Brandt, the CEO of the U.S company ContourGlobal, sign a deal on the sale of Vorotan Hydro Cascade in Yerevan (Photo: gov.am)
The $250 million (USD) purchase was quickly hailed by Armenia’s Prime Minister Hovik Abrahamyan, who called the deal an “important step towards strengthening bilateral economic relations” between the U.S. and Armenia.
The agreement, which was signed in Yerevan by ContourGlobal CEO Joseph Brandt, was initially due to be completed by last April, but was put on hold when Abrahamyan announced that some of its provisions ran counter to Armenian law and needed to be renegotiated.
According to Azatutyun.am, RFE/RL’s Armenian service, ContourGlobal will pay $180 million (USD) for Vorotan Hydro Cascade’s equity and invest another $70 million in the facility’s modernization over the next five years.
Speaking to the Armenian Weekly, Armenian National Committee of America (ANCA) Executive Director Aram Hamparian welcomed the news . “We welcome the growth of U.S.-Armenia trade and the increased diversification of the foreign investment environment in Armenia,” said Hamparian, adding, “Expanding bilateral commerce creates jobs in both countries, strengthens the longstanding friendship between the American and Armenian peoples, and –very meaningfully – provides Armenia with a broader set of strategic options in dealing with regional powers.”
The Vorotan Hydro Cascade consists of three power plants, which are situated on Vorotan River in Syunik.
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Source: Weekly
Link: U.S. Firm Buys Armenia’s Largest Hydroelectric Complex